Lesser-Known Factors Car Insurance | Car Insurance Buying Hacks Singapore

Car Insurance | Insurance
by Priyadarshini 30 November 2022

Some people prefer to pick up their car insurance policy along with the keys at the dealership because there is usually a discount (and who doesn’t like discounts, especially in this time of high inflation?). But, despite the potential savings in insurance costs, have you considered that it may not provide the most comprehensive coverage in the long run? Read about five lesser-known factors for car insurance.

So, if your car insurance is about to expire, it may be time to shop around for a better plan rather than simply renewing your current one for convenience or because it’s cheap.

Five Lesser-Known Factors for Car Insurance

Do not overlook the NCD (no-claim discount) penalty

An NCD is a discount on your insurance premiums offered at the end of each year if no claims are filed. Your NCD will typically increase each year for a set number of years before reaching a maximum. Car insurers typically reduce your NCD by 30% for each claim you make. As a driver, you must accumulate NCD over time, and it is extremely inconvenient to have it reset by such a large amount if you need to make a claim (even if it is not your fault!).

Having a good NCD is actually quite important because the cost savings can be enormous, and we need all the help we can get in this high-inflation climate. 30% is a significant sum of money, especially if your NCD was previously 50% and has now dropped to 20% due to the fact that you had to file a claim. If you’re extremely unlucky and your NCD resets to 0%, it could take you five long years to regain your 50% NCD (provided no claims are made in between).

Even after a claim, it is possible to keep your NCD intact

You read that correctly! There is a car insurance policy that allows your NCD to remain intact even after you file a claim.

Young and inexperienced drivers can avoid the additional fees

The excess is the amount you must pay before receiving your insurance payout. So, if your excess is $400 and you want to file a $1,200 claim, you must first pay $400 before the insurance company will pay the remaining $800. Because insurance companies consider young and/or inexperienced drivers to be riskier, they may be required to pay an additional excess. This is typical of auto insurance policies.

If you belong to a certain demographic, you may pay less for car insurance

You may have heard that certain people are eligible for lower car insurance premiums based on factors such as gender, vehicle model, age, and even marital status. As a result, an 18-year-old driving an ah beng sports car may pay higher premiums than a married, middle-aged mother driving a Toyota Camry.

During promotional periods, you can get discounts/savings

Look for special promotions that offer car insurance premiums at a discount. If you are an individual who values comprehensive coverage over low premiums.

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